I doubt people avoid PvP due to the rebuys. It's more likely that PvP is just not their playstyle, and is seen as more of a nuisance than a feature. It's that way for me. PvP is a bother, an inconvenience, a hinderance to the co-op play I generally look for. And unfortunately, a meta PvP ship is absolutely useless for anything other than combat, so I am unlikely to ever even be in one when someone decides to drop by to get their murder on..
I am not sure what incentive one could offer me to willingly engage in PvP. Everything about it is so narrowed to the meta in an even match up that it's just not fun. Uneven matchups are even less fun. The one incentive I would want, giving me the time wasted on it back, is not a possibility.
That said, I am not against some sort of incentive to play PvP.
Though I would probably go with something similar to MechWarrior 2's "Star Underweight Bonus". You accrued Honor faster if the mechs in your star came in under a certain total weight. Giving more Xp towards ranks, influence, reputation, and/or a bounty bonus modifier of a few to more than a few %, or bonus Arx based on a ships "score", would be interesting. The lower your ship's "score" the higher the bonus modifiers. The higher your ships score the lower the modifiers. You could even drive the winners modifiers negative if the winners ship had to high a score compared to the losers.
A ship's score would be figured based of it's size, number of hard points, number combat and defensive modules fitted, and engineering levels.
I still would not likely be interested in PvP though.